How quickly has this week gone by? The whole week was about the EU summit. Global financial markets were pulled and pushed by the news coming out of Europe on the hour! By the end of Thursday, the EU leaders still could not convince the global markets that they will come up with solid solutions to fight the financial crisis. So, stocks just drifted lower.
Mining and energy stocks were very weak: WLT -6.61%; CLF -5.17%; SLB -4.18%; APA -3.65%; OXY -3.74%. The finacials slid back, after showing some strength in the beginning of the week: WFC -3.18%; BLK -3.94%; GS -4.96%.
The Dow was down 198.67 points; SPX lost 26.66 points; Nasdaq dropped 52.83 points:
SOXX (semiconductors) and FDN (internet) were both weak. XME (metals and mining) plummeted 4.83%. OIH (oil services) fell 3.35%. GLD (gold) and SLV (silver) both dropped. XLF (financials) fell below $13, again.
SPX lost 26.66 points to close at 1234.35. It closed at its 30-day MA. The MACD went down.
Nasdaq dropped 52.83 points to close at 2596.38. It closed below the 30-day MA. Its MACD also went down.
As mentioned in this week's Market Forecast, the Dow has been outperforming Nasdaq and SPX. This means that smart money is buying the bluechip stocks more than the betas. SPX keeps fighting to break 1260. But, after 4 days, SPX still could not break that barrier. After the market, TXN lowered its 4Q outlook, and its shares fell 5.85%. ALTR chimed the same tune; its shares dropped 6.12%. These won't help the Nasdaq tomorrow. Just last week, the market went on a wild run. Now, its right back into neutral gear, in the middle of the wide range that the market has been stuck in for the past 3 months!
VIX popped back above 30 today. You know what that means: caution is back on! The latest from Europe is that the EU summit has failed to reach an accord for the 27 countries. So, now the 17 eurozone states are trying to reach their own agreement. For once, it was not the US Congress that held the world's breath. After a whole week of anticipation, so far, EU has reintroduced the sour taste in the global financial markets. Ewwww!
Good night and HappyTrading! ™